11 unchanged sentences
In a rising rate environment, our net interest margin between a floating cost of funds and a fixed rate interest income stream may become compressed.
−Removed: We believe we are able to effectively mitigate this risk due to the short term nature of many of our receivables and the ability to adjust pricing on new receivable purchases.
+Added: We believe we are able to effectively mitigate this risk due to the short term nature of many of our CAR receivables and the ability to adjust pricing on new receivable purchases.
The following table summarizes the potential effect on pre-tax earnings over the next 12 months from interest expense, assuming we are unable to reprice the underlying assets that serve as collateral, on that portion of notes payable subject to interest rate volatility.
12 unchanged sentences
In addition, we believe this risk is mitigated by our deep experience in customer service and collections from more than 25 years of operations.
−Removed: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of June 30, 2023, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in credit loss rates by 10% for the next 12 months.
+Added: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of December 31, 2024, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in credit loss rates by 10% for the next 12 months.
The sensitivity does not factor in other associative impacts that could occur in such a scenario.
15 unchanged sentences
The discount rates for our Loans, interest and fees receivable, at fair value may change due to changes in expected loan performance or changes in the expected returns of similar financial instruments available in the market.
−Removed: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of June 30, 2023, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in required market rates of return by 10%.
+Added: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of December 31, 2024, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in required market rates of return by 10%.
The fair value and earnings sensitivities are applied only to financial assets that existed at the balance sheet date, which included all of our loans, interest and fees receivable, at fair value and our loans, interest and fees receivable, gross.
6 unchanged sentences
Income (loss) before income taxes
−Removed: Payment risk reflects the risk that changes in the economy could result in reduced payment rates on our receivables.
−Removed: In a strong economy, consumers' incomes may increase which may lead to increased payment rates.
−Removed: In a weak economy, consumers' incomes may decrease which may lead to decreased payment rates.
−Removed: Likewise, the availability of government stimulus payments to consumers during a weak economy may cause payment rates to increase.
+Added: Payment risk reflects the risk that changes in the economy could result in reduced payment rates on our receivables, impacting the timing of expected payments from consumers.
+Added: In a strong economy, consumers' incomes may increase, potentially resulting in increased payment rates.
+Added: In a weak economy, consumers' incomes may decrease, potentially resulting in decreased payment rates.
+Added: Reductions in the payment rates mean it will take us longer to collect the underlying cash flows, potentially reducing the fair value of the receivable.
+Added: Conversely, increases in the payment rate shorten the time period to collect the underlying cash flows, potentially increasing the fair value of the receivable .
Similar to our credit risk, we believe this risk is mitigated by our deep experience in customer service and collections from over 25 years of operations.
We may also take active and passive account actions including limiting purchases, assessments of additional fees or increases in interest rates if results indicate a possible exposure.
−Removed: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of June 30, 2023, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in payment rates by 10% for the next 12 months.
+Added: The following table summarizes (in millions) the potential effect on pre-tax earnings and the potential effect on the fair values of loans on our consolidated balance sheet as of December 31, 2024, based on a sensitivity analysis performed by management assuming an immediate hypothetical change in payment rates by 10% for the next 12 months.
The sensitivity does not factor in other associative impacts that could occur in such a scenario.
13 unchanged sentences
Refer to Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations – Liquidity, Funding and Capital Resources" and Note 10 "Notes Payable" to our consolidated financial statements included herein for further information on our outstanding Notes Payable.
−Removed: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
−Removed: See the Index to Financial Statements in Item 15, "Exhibits and Financial Statement Schedules."
−Removed: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.